Arbor Americana MHC

PLEASE DO NOT SPEAK WITH TENANTS OR EMPLOYEES

PRICE REDUCTION

14210 Telegraph RoadFlat Rock, MI 48134

123-SITE MH COMMUNITY • COMMUNITY PRICE: $984,000 $650,000

For a video tour, please visit: https://vimeo.com/216238764

SITE INFORMATION

ADDRESS 14210 Telegraph RoadFlat Rock, MI 48134

COUNTY Monroe

TAX PARCEL ID 03-006-133-00

SITES 123

COMMUNITY TYPE All Age

YEAR BUILT 1950

LAND SIZE/DENSITY 21.69 acres (5.67 sites/acre)

COMMUNITY PRICE $984,000 $650,000

INVENTORY HOMES None

MH PHYS OCC 45.52% (56 sites as of Jun ‘17)

AVERAGE LOT RENT $305 (includes trash and sewer)

LAST RENT INCREASE None in past 13 years

ROADS Asphalt

FLOODPLAIN Zone X

PROPERTY DETAILS

INVESTMENT HIGHLIGHTS• Opportunity to acquire a 123-site value add property situated on 21.69

acres with proximity to two major metro markets.

• Owner recently put in a brand new wastewater treatment plant (WWTP) for approximately $600k.

• Demand for affordable housing is significant in this area and the park gets calls all the time from tenants looking for available homes. However, current owner has put all available capital towards the new WWTP and is unable to invest in a home program. A new, well capitalized buyer should be very successful increasing occupancy going forward.

• The community suffered in the 2008 downturn and is currently at 45% physical occupancy. Due to the low occupancy and recent installation of the new WWTP, the owner has not had the capital to run the park or make regular repairs. There is tremendous opportunity for a buyer to come in and make immediate fixes to quickly improve performance.

• Several avenues exist for a buyer to increase performance: fixing leaking water lines, repairing broken submeters, hiring a more cost effective treatment plant operator, enforcing collections, and updating the housing stock.

• Collections have begun to improve as the owner has started taking legal action against delinquent tenants. They have gone up from $10,725 in Jan ‘17 to $15,952 in Mar ‘17.

• Community is on municipal water with submeters.

• Offered at a low basis of $8,000 per site, which is significantly below replacement cost.

• Orchards MHC, a 55+ community just down the road, rents lots at $383 per month and offers homes in the $40-60k and up price range.

AREA HIGHLIGHTS• Arbor Americana is located 32 miles north of Toledo and 22 miles

south of Detroit in a county of 149,568 people.

• The surrounding area boasts excellent demographics with average incomes of $74,898 and average home values of $209,503 in a one-mile radius of the property.

• As of December 2016, Monroe County’s unemployment rate was only 3.4%, not seasonally adjusted. This is considerably lower than both the state and national averages of 5.0% and 4.8%, respectively.

• Ford recently announced plans to invest $700 million in its Flat Rock Assembly Plant and create 700 new jobs in Michigan as it adds production of a new electric SUV and self-driving hybrid vehicle.

• Flat Rock Speedway, operated as a sister track to Toledo Speedway, is directly across the street from the community.

• Monroe’s largest employer, the Promedica Monroe Regional Hospital, is less than 20 minutes from the property.

• Residents have several entertainment and shopping options within driving distance of the community including the Monroe Mall which features more than 50 shops and the Phoenix Movie Theater

UTILITIES

WATER Berlin Township (submetered)

PRIVATE SEWER WWTP (included in rent)

ELECTRICITY DTE (direct billed to tenants)

GAS DTE (direct billed to tenants)

CURBSIDE TRASH Waste Management (included in rent)

123-SITE MANUFACTURED HOUSING COMMUNITYCOMMUNITY PRICE: $984,000 $650,000

Arbor Americana MHC

FINANCIAL ANALYSIS

1

2 Gross Scheduled Rent

Less: Vacancy 57.72%3 Less: Bad Debt 1.00%

Total Rental Income 41.28%4 Plus: Utility Income 1114 Plus: Other Income 48

Total Other Income 158

Effective Gross Income

EXPENSES per site

Repairs & Maintenance $120

Payroll 180

Administrative 15

Marketing 5

Professional Fees 305 Utilities 646 Water 133

Trash 154

Total Variable Expenses $7017 Taxes 157

School Taxes 158 Sewer Operator 439

Insurance 32

Management Fee 5.00%

Total Operating Expenses $1,4289 Plus: Capital Reserves 50

Total Expenses $1,478

NET OPERATING INCOME

Expense Ratio

1,872

21,9961,922

3,6907,879

16

18,961$86,227

$205,291

6,150

54,000

$175,64910,265

54,0001,872

0 030 3,66362 7,649

1,845

19,473

Proforma10

INCOME$450,180

4,502

16,337

19,349

$185,818

5,858

615

$14,76022,140

13,614

Proforma Exp

$181,799

0.00% 0

$151,252

Financial Analysis

$14,758

Actuals

$151,252

per site

$120

000

0

100.00%

0

0

$151,252

0.00% 0

13,850

439

15

$1,430

00.00%

18,409

113

$831

$175,941

$1,430

3,96132

150

$102,258

0

$175,941

$23,492

116.32%

($24,689)

0

88.56%

259,860

3,936

2016 Actuals

179

275 33,862

1. Actual numbers based on financials provided by the client

2. Proforma GSR = $305 x 123 sites x 12 months

3. Seller indicated that delinquencies were high in 2016 due to rumors that the community was going to close and lack of capital to take legal action against tenants; The Proforma reduces bad debt to 1% resulting in higher income; Delinquencies have already begun to decrease as evidenced by the increase in collections from $10,725 in Jan ’17 to $15,952 in Mar ’17

4. Utility & Other Income based off of Apr ‘17 rent roll

5. Adjusted Utilities grown 3% from 2016

6. Proforma assumes $18k/yr saved after fixing water leaks at property

7. Proforma Taxes = $387,682 taxable value x 4.991% tax rate; Assessed value = $775,364

8. Sewer Operator expense is for third party group; Owner believes they are one of the more expensive operators and the expense could likely be reduced

9. Historical Capital Reserves are unknown and do not represent actual amounts

10. Proforma is first year projection put together by ARA Newmark and may not represent actual future performance

UNDERWRITING ASSUMPTIONS

123-SITE MANUFACTURED HOUSING COMMUNITYCOMMUNITY PRICE: $984,000 $650,000

Arbor Americana MHC

PROPERTY location and demographics

Ann Arbor

Detroit

ARBOR AMERICANA MHC

DEMOGRAPHIC INFORMATION 1 MILES 3 MILES 5 MILES

2016 Population Estimate 1,412 22,331 62,092

2021 Population Projection 1,377 22,289 61,667

Population Growth Estimate 2016 - 2021 -0.50% -0.04% -0.14%

Renter Occupied Housing Units 15.0% 20.8% 18.9%

Owner Occupied Housing Units 76.5% 75.4% 76.4%

2016 Est. Median Household Income $59,992 $57,683 $64,687

2016 Est. Median Owner-Occupied Housing Value $179,741 $153,427 $165,760Source: U.S. Census Bureau

TOP WAYNE COUNTY EMPLOYERS EMPLOYEES

Ford Motor Company 39,053

Henry Ford Health System 11,634

Rock Ventures 11,524

Detroit Medical Center 10,528

City of Detroit 9,137

U.S. Government 8,180

Chrysler Group LLC 7,315

Oakwood Healthcare Inc. 6,260

Detroit Public Schools 6,258

Wayne State University 6,010

TOP MONROE COUNTY EMPLOYERS EMPLOYEES

ProMedica Monroe 1,738

Detroit Edison Corp. 1,251

Johnson Controls (Plastech) 815

Monroe Public Schools 800

Bedford Public Schools 625

Chrysler Engine Plant 590

Gerdeau Specialty Steel 510

La-Z-Boy Inc. 491

Meijer Inc. 475

Tenneco Inc. 456Source: Monroe County 2015 Comprehensive Annual Financial Report Source: Wayne County 2015 Comprehensive Annual Financial Report

123-SITE MANUFACTURED HOUSING COMMUNITYCOMMUNITY PRICE: $984,000 $650,000

Arbor Americana MHC

Property aerial

Ann Arbor

Detroit

ARBOR AMERICANA MHC

FORD FLAT ROCK ASSEMBLY PLANT• 2.9 million-square-foot manufacturing plant that opened in 1987 and produces the Lincoln Continental and

Ford Mustang.• Ford plans to invest $700 million and create 700 jobs in Flat Rock as it begins production of electric vehicles at

the plant.• Employs 3,251.

PROMEDICA MONROE REGIONAL HOSPITAL• Large, 238-bed hospital with a network serving Southern Michigan and Ohio.• ProMedica plans to move and build a new facility on a 250-acre site a couple miles from the current location to

allow for future expansion.• Largest employer in Monroe County with 1,738 employees. CHRYSLER TRENTON ENGINE PLANT• 2.1 million-square-foot manufacturing plant that produces V-6 Pentastar engines for vehicles such as the Jeep

Cherokee and Jeep Wrangler.• In 2016, Chrysler announced plans to invest $74.7 million in the Trenton plant which is expected to retain

245 jobs.• Employs 1,505.

N

123-SITE MANUFACTURED HOUSING COMMUNITYCOMMUNITY PRICE: $984,000 $650,000

Arbor Americana MHC

This information has been derived from sources deemed reliable. However, it is subject to errors, omissions, price change and/or withdrawal, and no warranty is made as to the accuracy. Further, no warranties or representation shall be made by ARA, A Newmark Company (ARA Newmark) and/or its agents, representatives or affiliates regarding oral statements which have been made in the discussion of the above property. This presentation, prepared by ARA Newmark was sent to the recipient under the assumption that s/ he is a buying principal. Any potential purchaser is advised that s/ he should either have the abstract covering the real estate which is the subject of the contract examined by an attorney of his/her selection, or be furnished a policy of title insurance. Do not contact the Property.

www.aranewmark.comManufactured Housing Group: 901 S. MoPac Expressway, Barton Oaks Plaza II, Suite 275, Austin, TX 78746 T 512.342.8100

Additional information for Arbors Americana MHC is available on our website at:http://arausa.listinglab.com/ArborAmericanaMHC

Jon Shayjshay@aranewmark.com T 303.260.4486

NATIONAL MANUFACTURED HOUSING GROUP

Andrew Shihashih@aranewmark.com T 512.637.1219

Todd Fletchertfletcher@aranewmark.com T 303.260.4470

PRIMARY CONTACTS:

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ARBOR AMERICANA MHC

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For a video tour, please visit: https://vimeo.com/216238764